Over 60 per cent industrialists have 'dim view' of Punjab

Published: Friday, September 26, 2008, 20:34 [IST]

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Chandigarh, Sep 26 (UNI) A study by FICCI showed that as many as 62 per cent of the industrial respondents took a pessimistic view on Punjab as an investment destination and were concerned over shortage of land, inadequate industrial infrastructure with acute shortage of power, an adverse taxation regime and a lackadaisical approach of the State Government both in terms of support and incentives offered.

In view of the dim view taken by the industrialists on the attractiveness of the state as an industry hub, the study conducted bu FICCI jointly with Konrad Adenaeur Foundation (KAF) on 'State Level Reforms, Increasing Investments in Punjab', recommended a five-point action agenda and identified some core area for intensive and focussed development.

While only 9 per cent of the participating companies said that they were optimistic about Punjab as an investment destination, the remaining 29 per cent took a neutral stand on this subject.

During one-to-one meetings with industry representatives, quite a lot of respondents indicated that not only are new/fresh investments in the state were hard to come by, but that several existing units were also moving out of Punjab to undertake expansion in other states, it said.

''Addressing this negative perception amongst the industry is therefore a critical task that the government will have to undertake, as this view, if it persists for long, would also impact sentiment of investors from outside the state that may otherwise be looking at Punjab as a potential investment destination,'' the study commented.